BOEM Completes Tract Evaluation and Awards Leases in Western Gulf of Mexico
Contact: John Filostrat
NEW ORLEANS – The Bureau of Ocean Energy Management completed its required evaluation to ensure that the public receives fair market value for tracts leased as part of Western Gulf of Mexico Oil and Gas Lease Sale 246. The sale was held on August 19, 2015.
After extensive economic analysis, BOEM has awarded leases on all 33 tracts receiving bids covering 190,000 acres to successful high bidders who participated in the sale, which made 4,083 unleased blocks covering nearly 22 million acres available offshore Texas. The accepted high bids are valued at $22,675,212. The highest bid accepted was $2,802,003, submitted by Ecopetrol America for East Breaks Block 685.
BHP Billiton Petroleum placed 26 of the 33 bids, all in deep water. Two bids were for tracts in water depths less than 200m, while the remaining bids were placed on tracts in water depths greater than 400m.
The terms of Sale 246 continue a range of incentives encouraging diligent development and ensuring a fair return to taxpayers, including escalating rental rates and tiered durational terms with relatively short base periods, followed by additional time under the same lease if the operator drills a well during the initial period.